BREAKING: CBN Lending To Federal Government Rises To N34.2 Trillion In December 2025
The Federal Government’s borrowing from the Central Bank of Nigeria (CBN) surged to N34.2 trillion in December 2025, marking the highest level recorded within the year.
This was revealed in the latest CBN Money and Credit Statistics report.
The figure represents a sharp increase from N26.3 trillion recorded in November 2025, signalling rising government dependence on central bank financing.
Additionally, the December 2025 borrowing exceeded the N27.1 trillion recorded in the same month of 2024, highlighting a significant year-on-year growth.
What the data is saying
Government borrowing from the CBN reached N34.2 trillion in December 2025, the peak level for the year. This was a substantial rise from N26.3 trillion in November 2025, reflecting a steep month-on-month increase.
•The December 2025 figure surpassed the N27.1 trillion recorded in December 2024, indicating a continued year-on-year rise in central bank financing.
•The surge reflects increasing fiscal pressures, growing expenditure obligations, and persistent revenue shortfalls towards the year-end.
•These developments have sparked concerns about fiscal sustainability and the inflationary risks associated with heavy borrowing from the apex bank.
The data demonstrates growing government reliance on Ways and Means Advances, a temporary funding mechanism provided by the CBN.
Get up to speed
The Federal Government has long relied on CBN Ways and Means Advances to bridge funding gaps, especially during periods of revenue shortfalls and rising expenditure pressures.
Since the Petroleum Industry Act was enacted in 2021, the government has made efforts to stabilise public finances, including securitising portions of these advances to ease immediate fiscal pressures.
However, sustained borrowing has raised concerns about compliance with statutory limits set under Section 38 of the CBN Act, which caps borrowing at 5% of the previous year’s actual revenue.
Despite initiatives to manage borrowing levels, the government’s dependence on central bank financing has often sparked debates about its potential impact on inflation, fiscal sustainability, and credit availability for the private sector.
In 2024, the government settled N7.3 trillion in Ways and Means Advances, signaling a commitment to reduce outstanding debt while pledging increased reliance on domestic resources.
What you should know
A recent CBN report highlights positive external sector developments. Nigeria moved into a net lending position of $320 million in Q3 2025.
•This improvement was driven by a sharp rise in foreign direct investment (FDI) liabilities, which increased to $0.72 billion in Q3 2025 from $0.09 billion in Q2 2025, signalling stronger long-term investor confidence in the Nigerian economy.
•Conversely, portfolio investment inflows declined to $2.51 billion from $5.28 billion in the previous quarter, indicating a moderation of short-term capital while longer-term investments improved.
